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There are millions of people in the country who do not work permanently for any company, but instead freelance. Additionally, many earn their living through online platforms or their own work. Now, even these individuals can benefit from financial security through PF in the future. The Employees' Provident Fund Organization (EPFO) is now working on a Universal Provident Fund (PF) scheme, through which the self-employed, gig workers, and unorganized sector employees will be able to build a fund for their retirement. However, the government has not yet officially announced this scheme. Let's learn more about the details. 

According to media reports, the proposed new EPFO ​​scheme could most benefit those currently outside the EPFO's scope. These include self-employed individuals, gig and platform workers, freelancers and consultants, unorganized sector workers, and certain other workers outside the EPFO.

In such a situation, if this new scheme is implemented, these individuals will be able to save regularly in their PF accounts at their own discretion. Under the new scheme, members will be able to make contributions daily, weekly, monthly, or annually, as per their convenience. Additionally, annual interest will accrue on deposits, similar to the interest earned on existing EPF accounts. This will also provide an opportunity for long-term savings for those whose income is not consistent from month to month.

Tax exemptions are also
being considered in the proposed scheme. According to reports, annual contributions up to ₹2.5 lakh and the interest earned on them could be tax-deductible. However, no official notification has been issued regarding this.

A key feature of the new scheme is that there will be no need to withdraw the entire amount at once upon retirement. Members can choose to keep their funds in the EPFO ​​and withdraw the funds in installments as needed. This arrangement could be similar to the Systematic Withdrawal Plan (SWP) of mutual funds. It is being said that this facility may also be extended to existing EPF account holders in the future.

The EPFO ​​has already begun work on building the information technology systems and digital infrastructure required for this scheme. However, it has not yet received formal permission from the government. The government's goal is to expand the scope of protection so that not only organized sector employees but also those in the unorganized sector and the gig economy can save for retirement. The EPFO ​​is taking this important step to provide social security to millions of workers in the unorganized sector. The PF benefit, which until now was available only to salaried employees, will soon be open to the general public. This universal scheme will make it easier for self-employed individuals to officially save and receive government interest every month.